Research Areas‎ > ‎

Economic Networks

Our activity is in the track of a long-standing interaction between economics and physical sciences in order to explain, extend and complement a recent analysis introduced to describer the network of trades between nations. Hidalgo and Hausmann  addressed the problem of competitiveness and robustness of different countries in the global economy by studying the differences in Gross Domestic Product and assuming that the development of country is related to different capabilities

While countries cannot directly trade capabilities, it is the specific combination of those capabilities that results in different products traded. More capabilities are supposed to bring higher returns and the accumulation of new capabilities provides an exponentially growing advantage. Therefore the origin of the differences in the wealth of countries can be inferred by the record of trading activities analyzed as the expressions of the capabilities of the countries. The information is available in the form of an NcXNp rectangular matrix M giving the different production of the possible Np goods for each of the Nc countries. The matrix M corresponds to a bipartite graph, the country-product network, that can be projected into the country-country network C=MMT and the product-product network P=MTM.

In this unit we 

  • collaborate with University of Zurich and European Central Bank in order to study the trees of production from input/output matrices;
  • extend traditional gravity model by means of statistical physics models of networks based on fitnesses;
  • reconstruct trading relations by means of statistical methods.